March 14 (Reuters) - The shutdown of a quarter of Japan's
refining capacity and 11 of its 54 nuclear reactors following
Friday's earthquake and tsunami has boosted global prices for
fuel and natural gas.
The expectation of higher Japanese demand for diesel and
fuel oil has boosted refinery margins as well as differentials
for crudes that yield a high amount of distillates.
Differentials for fuel also rose on expectations of higher
In addition, natural gas prices rose on forecasts Japan's
demand for liquefied natural gas (LNG) would increase for power
Below are details of the impact on energy markets:
ICE gas oil Futures-ICE Brent futures spread:
Asian gas oil swaps front-month crack:
Nigerian benchmark Qua Iboe premium over dated Brent:
Japan's gas oil exports Jan 2009-Jan 2011:
Naphtha CFR Japan 12-month forward curve:
UK gas prices surge on Japan quake:
* UK gas for summer delivery rose 8 percent on Monday,
hitting 64.60 pence per therm at 1400 GMT. Spot gas was up 7
percent at 63.50 pence, the highest since a December cold snap
boosted gas heating demand. [ID:nLDE72D2AX]
* U.S. natural gas futures traded up nearly 4 percent in
early activity, before erasing gains on expectations that
milder weather in the United States would limit demand.
* Front-month Asia gas oil cracks hit $23.41, up $1.80 from
the previous session and the highest level in more than three
years, as the loss of refining capacity further boosted the
outlook for diesel.
* Asian jet fuel's prompt crack gained $1.07 to $23.83 a
barrel, its highest level in at least two years, while its
premium to gas oil added 10 cents to $1.35 a barrel.
* Fuel oil monthly timespreads for April/May swaps rose on
Monday, leaving the curve in deeper backwardation.
* Profits from refining Brent crude into naphtha - slid
$9.20 to $128.05 a tonne premium, the lowest since Feb. 28.
* The spread or crack between ICE gas oil and Brent futures
moved to a 26-month high of nearly $17 a barrel as the market
anticipated higher demand for distillates and fuel oil from
other regions in the wake of the Japanese earthquake and
* European low-sulphur fuel oil barge prices rose to
30-month highs on Monday as traders anticipated the country
would need alternative power sources due to nuclear plant
closures. LFO-ARA [ID:nLDE72D155]
* U.S. Gulf Coast jet fuel and ultra-low sulfur diesel each
rose more than a cent per gallon in early Monday trade on
expectations of more exports to Japan. [ID:nN14154284]
* Diesel differentials in the Los Angeles market climbed 2
cents a gallon. [ID:nN14152949]
* The premium of Nigerian Qua Iboe to benchmark dated Brent
BFO-QUA stayed near a the 32-month high of around $4 that was
reached on Friday, according to Reuters data.
* The premium on Nigeria's other benchmark Bonny Light over
Brent BFO-BON also hovered around $4, a level last reached in
* Azeri Light, already buoyed by the supply disruption in
Libya, saw its premium to dated Brent BFO-AZR rise further to
around $3.75. The Azeri crude differential has pushed steadily
higher from around $1 in November 2010.
* The differential on Brent to dated Brent BFO-BRT was
just below $1, a level last reached in January this year.
(Reporting by Nia Williams, Karolin Schaps, Zaida Espana,
Eileen Moustaks, Kristen Hays, Erwin Seba; Editing by David